This response was submitted by the Taking Control coalition of civil society and debt advice organisations, including StepChange Debt Charity, which campaigns for independent regulation of the bailiff industry and other reforms to ensure fair and appropriate treatment of financially vulnerable people facing debt enforcement.
The introduction of a statutory regulator has been the primary goal of the Taking Control coalition since its inception in 2017. For too long, in stark contrast with other sectors including energy and financial services, the enforcement industry has not been overseen by a statutory regulator – raising significant concerns given the large number of financially and otherwise vulnerable people who interact with enforcement agents every single day.
Coalition members continue to hear from debt advice clients and community members who describe troubling, problematic or rule-breaking interactions when going through enforcement action – from rejection of reasonable repayment offers through to misrepresentation of enforcement powers and threatening and intimidating behaviour. So the creation of a statutory regulator cannot come soon enough, and we are very pleased the Government has confirmed its intention to pursue this.
Practically, we believe that the Enforcement Conduct Board (ECB) is well equipped to take this responsibility on. We have been pleased with the progress that the body has made so far in working towards its mission to ensure that everyone who experiences enforcement action is treated fairly, including its efforts to drive up standards in the enforcement sector and enhance complaints processes. However, without statutory underpinning, the ECB has no legal standing, meaning it is only able to perform its functions for as long as the enforcement industry, and creditors, are happy with its standards and any sanctions it applies. This leaves the ECB in a precarious position.
Statutory underpinning is therefore vital in:
- Guaranteeing the independence of the ECB;
- Providing the ECB with the legal standing it needs to set, apply and enforce standards across the industry;
- Ensuring there is a complete and effective system of oversight in the enforcement industry;
- Creating clear accountability for the ECB – to Parliament and Government (without this, the ECB is only accountable to the enforcement industry, due to its current, voluntary funding); and
- Giving everyone who interacts with the enforcement process – including creditors and citizens – confidence that this will be done fairly and in line with high standards that protect vulnerable people.
Our response details some of our recommendations to Government on how it should approach the development of legislation required to get these vital changes over the line, including regulatory objectives and standards, supervision and oversight, and sanctions.